03. ASE Technology Holding Co., Ltd. (NYSE:ASX)
Dividend Yield: 3.52%
Payout Ratio: 56.30%
Expected EPS growth for the next Five Years: 31.29%
ASE Technology Holding Co., Ltd. (NYSE:ASX) might not make daily headlines, but it plays a critical behind the scenes role in the semiconductor supply chain, especially as demand for AI and high performance computing skyrockets. While the company missed Q1 2025 earnings expectations by a couple of cents, the underlying fundamentals paint a much stronger long term picture.
For Q1, ASE posted 12% year over year revenue growth, despite the seasonal softness that typically hits the first quarter. Gross profit came in at NT$24.9 billion, with margins improving both sequentially and annually, reaching 16.8%. Without purchase price accounting (PPA) adjustments, gross margin would’ve been a healthy 17.2%, and net profit stood at NT$8.4 billion. The company’s ATM segment (advanced packaging and testing) led the charge, with revenues jumping 17% year over year, reflecting rising demand for cutting edge chip solutions.
What’s driving the excitement around ASE in 2025? Two key words: AI packaging. The company’s LEAP (Leading Edge Advanced Packaging) and testing operations are booming, accounting for 10% of ATM revenues, up from 6% in 2024. Management sees even more upside in the second half of the year, particularly from the surge in demand for AI chips that require complex testing and packaging infrastructure.
On the balance sheet front, ASE Technology Holding Co., Ltd. (NYSE:ASX) is preparing for growth, investing aggressively in new equipment to support next gen technologies like HBM, silicon interposers, and high I/O density chips, all critical for future AI, 5G, and networking devices.
Despite short term volatility and macro uncertainty, ASE’s long term strategy remains focused, profitable, and dividend friendly. For investors looking to ride the AI wave while collecting passive income, ASE Technology Holding Co., Ltd. (NYSE:ASX) stock is a compelling, under the radar opportunity with room to grow.
